Vontier Corp (VNT)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,310,500 | 4,294,000 | 4,343,300 | 4,349,800 | 3,073,000 |
| Total stockholders’ equity | US$ in thousands | 1,051,100 | 890,400 | 576,500 | 569,900 | 187,800 |
| Financial leverage ratio | 4.10 | 4.82 | 7.53 | 7.63 | 16.36 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,310,500K ÷ $1,051,100K
= 4.10
The financial leverage ratio of Vontier Corp has shown a decreasing trend over the past five years, declining from 16.36 in December 2020 to 4.10 in December 2024. This indicates that the company has been reducing its reliance on debt financing in relation to its equity. A lower financial leverage ratio suggests that the company is less leveraged and has a stronger equity position compared to debt. Overall, the declining trend in the financial leverage ratio of Vontier Corp reflects a more conservative approach to capital structure management and potentially lower financial risk.
Peer comparison
Dec 31, 2024